‘Shakedown’

“In one instance outlined in court documents, the company claims Sachigo Lake ‘First Nation’ demanded close to a quarter of its exploration budget – about $1.2 million – for its 2012 drill campaign, calling it an “administration fee”.

“When the company refused to give in, the ‘First Nation’ {a ‘nation’ of 814 people} served them with an “eviction” notice {from what is no longer aboriginal land}, forcing them to stop exploration work and leave the area.”

ERBLShakedown800x800“Two employees from a Sudbury-based junior mining company were held hostage for one day by members of a northwestern Ontario ‘First Nation’ band in 2011, in an attempt to obtain payment from the company as it carried out a gold exploration activity…

“…The company contends it was forced to pay $40,000 to the ‘First Nation’ to free two workers, who were “physically detained”, along with some equipment…” 

NorthernSuperiorResourcesLOGO‘Sudbury junior miner squares off against province’

“Northern Superior is seeking compensation from the province for failing to protect its interests in a gold exploration play in northwestern Ontario. The company was forced to abandon its mining claims after a series of disputes with a ‘First Nation’ community in 2011…

“Northern Superior filed a $110-million lawsuit in late 2013 to recover the $15 million it spent on exploration since 2006, plus the estimated future value of the three properties on Crown land as they worked toward a major gold discovery near the Manitoba border.

“The company has since dropped that figure to $25 million in an effort to reach a settlement with the province through mediation, but to no avail…

“In one instance outlined in court documents, the company claims Sachigo Lake ‘First Nation’ demanded close to a quarter of its exploration budget – about $1.2 million – for its 2012 drill campaign, calling it an “administration fee.”

“When the company refused to give in, the ‘First Nation’ served them with an “eviction” notice, forcing them to stop exploration work and leave the area.

“The company blames the Ontario government for its alleged inaction in carrying out its ‘duty to consult’ with ‘First Nations’.

“The province responded that it’s not liable for any damages incurred by the company, adding that the decision to stop exploration was theirs alone. The government further contends it’s not responsible for any demands made on the company by the ‘First Nations’, or the company’s decision to reject them…

“There will be changes in law if this goes to trial and Northern Superior wins,” said Tom Morris, president and CEO of Northern Superior Resources. “It will have a direct effect on how business is done in this province.”

“The province’s exploration community will be glued to the outcome of the trial…

“As a junior miner struggling to raise funds in a down market, Morris said the decision to go to court was not made easily. With the company’s stock price hovering at two cents a share and 200 million shares outstanding, Morris felt a fiduciary responsibility to investors to come to a resolution with the government and get on with exploration work at their other gold plays in Northern Ontario and western Quebec.

“In resorting to legal action, Morris said there’s been solid support from his board of directors and shareholders at two annual general meetings.

“I don’t want to be doing this any more than anyone else does, but we really weren’t given much choice…”

“In preparing for trial, the company recently received a bundle of previously withheld government documents obtained through a ‘Freedom of Information’ request, which Morris feels only further builds their case…”

–‘Sudbury junior miner squares off against province’,
Ian Ross, Northern Ontario Business, 9/17/2015

http://www.northernontariobusiness.com/Industry-News/mining/2015/09/Sudbury-junior-miner-squares-off-against-province.aspx

SachigoLake-Map‘Kidnapping and Extortion, By Anyone Else’:

“Two employees from a Sudbury-based junior mining company were held hostage for one day by members of a northwestern Ontario ‘First Nation’ band in 2011, in an attempt to obtain payment from the company as it carried out a gold exploration activity…

“Among the details in its statement of claim filed last week with the Ontario Superior Court of Justice, the company contends it was forced to pay $40,000 to the ‘First Nation’ to free two workers, who were “physically detained,” along with some equipment…

“Northern Superior Resources is an award-winning exploration outfit, recognized in September by the ‘Canadian Council for ‘Aboriginal Business’ for its progressive relations with ‘First Nations’.

“Morris contends the ‘First Nation’ was well aware of the company’s plans for a $10-million exploration program in 2012 when it imposed this fee.

“So I’m supposed to write a cheque to somebody for $2.4 million? We can’t do that.”

“The company terminated its activities soon after and, according to Morris, they haven’t stepped back on their properties since.

“I’ve got the letters and documentation saying clearly you’re not welcome back if you don’t pay this fee.”

“In the statement of claim, the ‘First Nation’ had further insisted that the company use a locally-owned aircraft — that had recently crashed — to transport drill core out of the property. Northern Superior officials deemed the plane unsuitable and unsafe.

“Sachigo Lake Chief Alvin Beardy did not respond to an interview request…

“Two years ago, Ontario withdrew 23,000 square kilometres of Crown land from exploration and spent a combined $8.5 million to buy out the claims of two companies, ‘Platinex’ and ‘God’s Lake Resources’, after a series of confrontations with ‘Kitchenuhmaykoosib Inninuwug’ {see below}, which had declared an exploration moratorium {breaking its Treaty} on its {ancestors’ surrendered} ‘traditional land’…

“Morris said the company was also sent a letter from K.I., saying it wasn’t welcome in their {former} ‘traditional territory’…

“Morris estimates the company has spent $15 million on exploration, with 25% of that going to Sachigo through training, hiring locals and helping to build local capacity…”

–‘Junior miner sues Ontario for $110 million’,
Ian Ross, Northern Ontario Business, Oct. 29, 2013

http://www.northernlife.ca/news/localNews/2013/10/29-northern-superior-resources-sudbury.aspx

Sachigo Lake 'First Nation' - Photo: Laureen Kaminawaish
Sachigo Lake ‘First Nation’ – Photo: Laureen Kaminawaish

The ancestors of the Sachigo Lake ‘First Nation’ extortionists signed on to ‘Treaty 9’, which they are now breaking:

“And His Majesty the King hereby agrees with the said Indians that they shall have the right to pursue their usual vocations of hunting, trapping and fishing throughout the tract surrendered as heretofore described, subject to such regulations as may from time to time be made by the government of the country, acting under the authority of His Majesty, and saving and excepting such tracts as may be required or taken up from time to time for settlement, MINING, lumbering, trading or other purposes.” {CAPS added}

https://www.aadnc-aandc.gc.ca/eng/1100100028863/1100100028864

ontario_court_of_justice_coat_of_arms“Northern Superior Resources is the fourth mining company to sue Ontario for failing to protect it from the illegal behavior and immoral demands of so-called “affected” nearby ‘First Nations’ bands.

“The first two, ‘Platinex’ {$5 million} and ‘God’s Lake Resources’ {$3.5 million}, were paid off with millions of taxpayers’ dollars. ‘Solid Gold Resources’, and now ‘Northern Superior Resources’, both justifiably want similar compensation from Ontario for being thrown to the wolves of ‘First Nations’ bottomless “consult and accommodate” demands.

“The combination of Supreme Court of Canada jurisprudence, and our provincial and federal Crowns’ timid, passive and enabling response to it, has created a Third World business environment in Canada’s wilderness areas, where Crown sovereignty and the rule of law are now afraid to go.

“Will no politician stand up for Crown sovereignty and the rule of law?

“Without them, the great mining enterprises of the Sudbury basin could never have happened. The construction of the ‘Canadian Pacific Railway’ and the ‘Trans-Canada Highway’ could never have happened.

“Without them, the ‘Ring of Fire’ won’t happen.

“Ordinary Canadians are getting demoralized by our elites continually failing to stand up for these two precious things.”

–Peter Best, Letter to the Editor, Sudbury Star, November 24, 2013

http://www.thesudburystar.com/2013/11/24/crown-sovereignty-law-must-be-respected

Kitchenuhmaykoosib Inninuwug 'First Nation'
Kitchenuhmaykoosib Inninuwug ‘First Nation’

“If they don’t like you, you don’t work… What kind of a deal is that? Because I didn’t do it right, the way the Indians wanted me to? Because I didn’t give them money? Because I didn’t beg them for permission to go? It’s just ridiculous, the whole concept.”

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“On the sidelines of the mining industry’s massive annual conference in Toronto in early March {2012}, a group of disgruntled junior exploration companies held a private meeting.

“Calling themselves ‘Miners United’, the ad-hoc group of about 60 small-firm executives shared concerns about the concessions and cash they say native bands expect from companies looking for minerals on Crown lands that are considered ‘traditional aboriginal territory’, where bands retain hunting and fishing rights {but only if not needed for resource development – See the Treaties…}. Scores of disputes between native groups and mining companies now end up in court…

“But there is a growing backlash among junior miners about these agreements.

“There’s a revolt taking place, frankly,” said Neal Smitheman, a lawyer with ‘Fasken Martineau DuMoulin LLP’ who acts for junior mining firms in disputes with aboriginal groups and who spoke at the Toronto meeting. “What’s being asked of them has nothing to do with ‘consultation’. It has everything to do with ‘compensation’.”

“Meanwhile, conflicts continue. The ‘Miners United’ meeting came just days after the Ontario government withdrew from exploration a large tract of Crown land about 600 kilometres north of Thunder Bay. The move was in response to opposition by the Kitchenuhmaykoosib Inninuwug ‘First Nation’ {a ‘nation’ of 1,429. “The community is only accessible by air for nine months of the year”}, which has refused to allow mining on Crown land it considers its ‘traditional territory’.
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However, their ancestors signed away these lands in 1929, in ‘Treaty 9’. See above, and:

“…the said Indians do hereby cede, release, surrender and yield up to the government of the Dominion of Canada, for His Majesty the King and His successors for ever, all their rights titles and privileges whatsoever, to the lands… the said land containing an area of ninety thousand square miles, more or less.

“And also, the said Indian rights, titles and privileges whatsoever to all other lands wherever situated in Ontario, Quebec, Manitoba, the District of Keewatin, or in any other portion of the Dominion of Canada.

“To have and to hold the same to His Majesty the King and His successors for ever.”

https://www.aadnc-aandc.gc.ca/eng/1100100028863/1100100028864

WahgoshigFirstNationLogo

“…Also at the meeting was Darryl Stretch, whose ‘Solid Gold Resources Inc.’ was hit in January with a rare court injunction suspending his drilling on claims near Lake Abitibi in Northern Ontario and ordering him to consult with the nearby Wahgoshig ‘First Nation’ {A ‘nation’ of 265 people; also a signee to ‘Treaty 9’, which it is now breaking…}.

“Mr. Stretch, whose lawyer is Mr. Smitheman, has appealed the injunction and plans to launch a lawsuit against the Ontario government. He said a $1-million financing deal he had lined up fell through because of the controversy.

“Mr. Stretch said the Wahgoshig wanted him to pay for a $100,000 archeological study to determine if his drill sites were disturbing burial grounds. He refused, saying Solid Gold could not afford it. He argues that his company has no legal requirement to consult the band.

“It’s not my obligation to go find arrowheads for those people, period,” he said in a phone interview.

“If they don’t like you, you don’t work… What kind of a deal is that? Because I didn’t do it right, the way the Indians wanted me to? Because I didn’t give them money? Because I didn’t beg them for permission to go? It’s just ridiculous, the whole concept.”

“Mr. Clark said the prices that native bands are charging for exploratory drilling keep rising and often top $100,000. Junior exploration firms, with no revenue, cannot afford such prices, he said.

“In some cases, exploration companies are paying per drill hole, or per metre of drilling, Mr. Clark said, adding that the Ontario government doesn’t know how much cash is changing hands because the deals are usually confidential.

“Garry Clark, executive director of the ‘Ontario Prospectors Association’, favours consultations with native groups, to ensure drilling operations do not disrupt hunting season, for example; or, once a mine is being built, to ensure local people benefit from its operations.

“While he believes Ontario’s new rules may ease the disputes, he is not sure they will stop the flow of cash to native groups at the exploration stage:

“They have to understand that we can’t be held, more or less, to ransom to get on the land.”

–‘Junior mining firms in ‘revolt’ over native deals’,
Jeff Gray, Toronto Globe and Mail Law Reporter, Mar. 27 2012

http://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/junior-mining-firms-in-revolt-over-native-deals/article4096310/
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For more on the ‘Solid gold’ case:

https://www.facebook.com/ENDRACEBASEDLAW/photos/a.336196793149227.59519.332982123470694/531767176925520/?type=1
and
https://www.facebook.com/digger.dan.731?fref=ts
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and for ‘Platinex’ —
‘The Shakedown of Platinex’:

“The financial shakedown aspect of a modern Indian entitlement claim was amply demonstrated in another Ontario case… ‘Platinex Inc. v. Kitchenuhmaykoosib Inninuwug ‘First Nation’…

“…Platinex was a mining exploration company lawfully engaging, at huge expense, in chromium/platinum mineral exploration activity on leased/licensed Crown land in the “Ring of Fire” area…but that was, as the court said, in “traditional Aboriginal territory” (which, as stated, could be said for almost any place in Canada).

“The description…is set out in lengthy fashion for an important reason; because they so well set out the template for the surreal and Kafkaesque fate which awaits any private business in Canada involved with any proposed Crown or Crown-authorized undertaking which doesn’t properly play ball with any remotely-nearby Indian band which demands… to be ‘consulted and accommodated’…”

http://nodifference.ca/essay/chap28
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IMAGE: Extortion.tv
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